Columbia Sportswear Co. Reports Record Second Quarter 2001 Results

SOURCE: Business Wire

PORTLAND, OR - Columbia Sportswear Co. (Nasdaq: COLM) announced net sales of $121.5 million for its second quarter ended June 30, 2001, an increase of 25.1 percent over the $97.2 million of net sales for the same period of last year.

Net income for the period was up 77.7 percent to $6.4 million, or $0.16 per share (diluted) on 40.1 million weighted average shares outstanding for the second quarter, compared to net income of $3.6 million, or $0.09 per share (diluted) on 39.2 million weighted average shares outstanding for the same period of last year. Earnings per share comparisons are reflective of the 3 for 2 split that was effected on June 4.

The increase in net sales for the quarter is attributable to continued strength in the company's key geographic markets as well as strength in each of the company's key merchandise categories. Specifically, compared to the second quarter of 2000, the company's domestic sales grew by 22.6 percent to $88.0 million, Canadian sales increased by 14.4 percent to $7.9 million, and other international sales increased 38.7 percent to reach $25.6 million. As a component of the other international classification, the company's direct European sales grew by 58.6 percent to $13.5 million for the second quarter of 2001 when compared to the same period of 2000. When measured in constant dollar terms, the company's European revenue grew by 70 percent for the period. Compared to the second quarter of 2000, sportswear sales increased 24.9 percent to $59.6 million, outerwear sales were up 20.3 percent to $44.8 million, and footwear sales grew 42.3 percent to $12.1 million for the period.

Net income growth for the second quarter of 2001 was due primarily to growth in net sales for the period coupled with a decrease in Sales, General and Administrative (SG&A) expenses as a percentage of sales to 34.6 percent from 38.0 percent in the second quarter of 2000. The decrease in SG&A as a percentage of sales was primarily the result of continued leveraging of infrastructure investments both domestically and abroad.

Tim Boyle, Columbia's president and chief executive officer, comments, "The second quarter was driven by relatively healthy retail performance of the Columbia brand globally and across all product categories. Despite an overall weak retail climate, we are pleased with the performance of the Columbia brand and our position in the marketplace as we move into future seasons. With each of our product categories and key geographic regions continuing to perform well, we are in a position to increase our objectives for revenue and earnings growth for the full year of 2001. At this point, we believe that revenue growth in the 22-24% range, and net income growth in the 30-34 percent range are achievable targets for the full year 2001 when compared to 2000. Investors need to be aware that these projections are forward-looking in nature, and are based on backlog and forecasts, which may change, perhaps significantly. In light of the softening economy in the U.S., we continue to be mindful that the economic well-being of retailers and consumers may adversely affect sales and profit margins and cause us to fall short of our current goals. Therefore, we will continue to operate the company using a lean, non-speculative inventory model, while maintaining prudent credit extension practices with the objective of preserving a very strong balance sheet. Although it is too early to provide specific guidance regarding the first half of fiscal 2002, at this point we anticipate spring 2002 backlog growth in the high single digit to low double digit range. Although below our historic spring growth rates, we believe this is a healthy rate of growth given current economic conditions."

The company's senior management hosted a telephone conference call at 5:00 p.m. EDT, Thursday, July 26, 2001. The call included discussions regarding the company's second quarter 2001 performance in general, a review of the company's geographic and merchandise category performance, and guidance for future periods. A replay will be available for 24 hours after the call has ended. To access, please dial 800/633-8284 in the United States (outside the United States, please dial 858/812-6440) and enter reservation No. 18507133. The replay can also be accessed on the investor information section of the company's Web site at http://www.columbia.com until August 9.